Australian Industrial Horizons

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LOGISTICS & INDUSTRIAL RESEARCH | INDUSTRIAL HORIZONS

SUBMARKET STATE OF PLAY

Western Sydney Western Sydney accounts for almost all of Sydney’s total industrial land stocks, led by the Outer West submarket, the majority of which stems from the WSEA and the Aerotropolis precincts. The delivery of infrastructure and key services are the main impediments to bringing this supply online. Taking into consideration current services and the indicative timeframe to make this land available for development, active land supply is estimated at closer to 825 hectares. Within the Aerotropolis, approximately 1,500 hectares of zoned enterprise land is considered suitable for industrial use. This 1,500 hectares is mainly in the priority precincts of the Northern Gateway and Badgery’s Creek. For the Mamre Road Precinct, approximately 600 hectares of gross land remain, noting that a large share of estates is not being marketed, given the uncertainty in delivery timeframes. Beyond this, the balance of land supply in Western Sydney is scattered throughout the region and includes ESR’s Moorebank Intermodal Terminal, the Marsden Park Business Park and parcels within the Outer South West at Oran Park, Gregory Hills and Smeaton Grange. Land availability within central precincts of Western Sydney, including the Central West and Inner South West are limited which continues to maintain pressure on land values. South & North Sydney Land supply within the South Sydney submarket is extremely low, particularly in core precincts (Mascot, Botany, Banksmeadow, Matraville and Alexandria), and most new supply in the pipeline will stem from knock-down rebuilds of existing facilities. Highlighting this is the current pipeline of multi level warehousing as developers look to maximise floorspace given high land values. While almost 9.0 hectares of land supply have been identified in the submarket, all of this forms part of the longer term pipeline and includes 9-13 Mcpherson Street, Banksmeadow. Residential encroachment and a current focus on housing supply have the potential to reduce industrial land in this precinct further. For Sydney’s North, very few vacant land parcels remain, which, like South Sydney, has encouraged redevelopment of obsolete facilities as evidenced by developments planned in Macquarie Park and Frenchs Forest. Macquarie Park and Mount Kuring-Gai represent the markets with modest land supply, albeit this totals less than 10 hectares across the entire submarket.

Sydney Industrial Land Supply

Zoned Industrial Land

Mamre Road Precinct

Vacant Industrial Land Supply

Aerotropolis